Tax divisions generally operate with poor quality data and unfortunately, many still operate using outdated technology which further reduces the quality of the data.A lack of planning combined with manual processing and outdated IT infrastructure has a direct impact on the data quality.Various tools such as business process management and Metadata modellers should be leveraged to deliver a higher level of excellence in this arena.Honiball continues, "The reality is that insufficient data wastes time and the fact that tax divisions are not generally viewed as a core part of the business process results in a duplication of work which inevitably increases operating costs.”
Businesses serious about improving their internal tax operations should focus on the following critical success factors:
• Stakeholder interaction to promote the tax agenda;
• Recognise tax as a core architectural component of business;
• Realise critical interdependencies in finance and tax;
• Manage relevant data – organise, design and safeguard; and
• Invest in technology for efficiency gains and improved control.
Source: By Hentus Honiball (Tax Professional)